* Entain raises earnings expectations
* Shares outshine FTSE 100 companies in early trading
* Firm doubles investment in game development studios
(Adds details from statement, background, share reaction)
By Muvija M
July 8 (Reuters) - Ladbrokes owner Entain boosted
its 2021 profit view and reported a jump in first-half net
gaming revenue on Thursday, with record bets placed on the Euro
2020 following the resumption of sporting events.
Entain expects core earnings of 850 million-900 million
pounds ($1.17 billion-$1.24 billion), ahead of current market
consensus, and better than the 843.1 million pounds reported in
2020 and 761.4 million pounds in 2019.
After a year marred by cancelled sporting events and closed
retail betting shops, an increase in online gambling during the
pandemic-induced lockdowns have helped bookmakers.
Entain reported its 22nd straight quarter of double-digit
growth in online net gaming revenue, up 22% in the three months
to June, when the Euro 2020 kickstarted after being called off
last year due to the health crisis.
The company said the tournament was its biggest ever sports
betting event, saying it took more bets than it did for the
World Cup in 2018. It did not give figures.
Shares in the firm, which owns bwin and Coral brands, rose
2% by 0835 GMT, outshining the blue-chip index.
"We expect trading to improve further once the retail
businesses are free of COVID-19 restrictions," Peel Hunt
analysts said, raising their target price to 21 pounds.
Hargreaves analyst Sophie Lund-Yates said England's
semi-final victory on Wednesday, setting up a finals match
against Italy on Sunday, could contribute "to the news that
underlying cash profits are expected to beat consensus at the
full year."
The firm said it was doubling investment in its game
development studios as it steps up its focus on online betting.
It recently bought European groups Bet.pt and Enlabs AB
and fended off a takeover attempt from MGM.
Entain said volumes at its retail shops since reopening were
only a tenth lower than before the coronavirus crisis.
But the easing of lockdowns in Britain has hit some online
earnings, with 888 flagging a 20% drop in average daily
revenue since May.
($1 = 0.7255 pounds)
(Reporting by Muvija M in Bengaluru; Editing by Shounak
Dasgupta and Edmund Blair)
888 Holdings (888)